HIPC Generates $31.7 million

Ghana has so far benefited from a $31.7-million debt relief under the Heavily Indebted and Poor Countries (HIPC) initiative from its multi-lateral creditors this year.

The amount forms part of the expected $273 million debt relief for this year from the World Bank, the International Monetary Fund (IMF) and the African Development Bank (AFDB), which is meant to finance projects under the Ghana Poverty Reduction Strategy Programme (GPRSP).

A Deputy Minister of Finance, Mrs Grace Coleman made this known at the opening ceremony of the Regional Workshop on External Assistance and Aid Management in Accra yesterday

The ten-day workshop is being organised by the West African Institute for Financial and Economic Management (WAIFEM) and Debt Relief International (DRI). Fifty-four participants drawn from member countries of WAIFEM namely, Ghana, Sierra Leone, Gambia and Nigeria are participating in the workshop.

It is aimed at, among other things, to help member countries to analyse and monitor the effects of aid flows and prepare cases for future external assistance as well as review existing aid and debt data. Mrs Coleman said ?negotiations are on-going to conclude bilateral arrangements with the Paris Club creditors and to seek comparable treatment of debt relief from non-Paris Clubs creditors?.

She called for a comprehensive training of officials not only for formulation of external assistance strategy but a sustainable government team capable of undertaking external assistance analysis on a regular basis.

The Deputy Minister said the country?s aid strategy has to be reflected in its economic development requirements and stressed that ?this will require the need for continuous interaction among those that are managing aid and the users of aid?. She called for negotiation of better terms of loan facilities, ensuring shorter disbursement periods, effective monitoring of aid utilisation, accurate macro-economic projections and policies.

The Deputy Minister said it is on record that the country has performed well in aid mobilisation more than it is required.

This, she said, might be attributed to the fact that, either the financing requirements of the country is underestimated or the absorptive capacity is lower than estimated.

?Accurate forecasting of the financing requirements of the country is therefore crucial?, she stressed.

The British High Commissioner to Ghana, Dr Rod Pullen said the workshop should help the on-going collective efforts to improve the prospects for the country in its effort to reduce poverty.

He said, Ghana must continue to place emphasis on human development aimed at higher literacy rates and levels of education, reduced rates of infant, child and maternal mortality.

Dr Pullen said development partners must see themselves as partners working with Ghana towards a common goal.

He said Britain is committed to focussing international development efforts on the achievement of the development goals that has been agreed between a cross-section of the international community and the United Nations.